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Berkshire deficit predicted in 2013
(by Joseph Koziol Jr. - October 13, 2011)
Berkshire deficit predicted in 2013
By JOSEPH KOZIOL JR.
Berkshire School District may be facing tough times ahead as state budget cuts to schools could put them in a hole by the end of 2013.
The Berkshire Board of Education got the word from district Treasurer Beth McCaffrey Monday that, although the district will be financially sound at the end of 2012, the cuts are likely to take their toll by the end of the following year.
Mrs. McCaffrey reported during her five-year forecast that the district will finish approximately $1.5 million in the black at the end of the current year. However, she said, the district may be facing a $73,000 deficit by the end of 2013.
While she expects expenses to remain fairly constant, the state budget cuts, particularly the loss of tangible personal property taxes, will likely take their toll on the school budget, she said.
School Board President Roger Miller asked whether income tax receipts were holding their own.
Mrs. McCaffrey said the school had seen a 7 percent increase in income taxes earlier this year compared to last year at this time.
But she said, until the district receives the October payment, due later this month, she could not say whether the district will continue to see the increase or a leveling off.
Board member James Koster said he had just returned from a trip to the southern states and the big news there was an increase in school taxes.
In many states, he said, school boards have the authority to approve a budget that increases taxes for district residents and businesses. No tax issues are put before voters as they are in Ohio, he said. In certain states, the approval of the school budget automatically increases taxes. "There it's imposed on you," he said.
He said such a system often leads to fat in budgets.
Board member Timothy Honkala said similar systems are in place in Pennsylvania and New York.
Mr. Miller said Ohio residents should count themselves lucky because they get to decide for themselves, through ballot levies, whether tax increases are affordable. "It's fortunate for us that we have a choice," he said.
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